Key Points and Benefits of Donating Real Estate to Charity

Did you know that your personal residence, vacation property or land has a significant value for charitable giving? A donation of real estate helps you achieve your charitable goals and provides you with maximum benefits allowed by law.

Donating real estate is not only beneficial, but flexible! If you’re interested in learning more about the gift of real estate, Giving Center can help you convert your real estate holdings into charitable gifts.

When you donate real estate …

• You will receive the maximum tax deduction allowed by law

• You avoid capital gains tax

• You participate in an opportunity to diversify your assets

• You can establish an income stream for your lifetime

• You can fully achieve your dreams of charitable giving

Options for Gifts of Real Estate

• Land (undeveloped parcels, vacant lots, parking lots)

• Investment property (residential, commercial, industrial)

• Commercial property

• Personal residence

Ways of Giving Real Estate

Give the Entire Property as a Current Gift

• Title is transferred to the Giving Center

• You receive an immediate deduction for the fair market value of the property (based on qualified appraisal)

• The Giving Center sells the property and utilizes the proceeds through their charity.

• Proceeds are used to support your charitable goals

Giving Part of the Property as a Current Gift

• You gift an undivided interest in a portion of the property to Giving Center.

• The Giving Center and you sell the property together

• You receive the proceeds and tax benefits from the portion retained

• The proceeds from the portion gifted are used to establish a fund at the Giving Center to support your charitable goals

Give the Property in Trust

• You establish a Charitable Remainder Trust (CRT) naming the Giving Center as the charitable remainderman

• The property is gifted into the trust

• You receive a tax deduction for the net present value of the gift, and there will be no tax on the appreciated value of the property

• The property is sold and reinvested in the trust

Bargain Sale

• You want to make a charitable contribution but need to receive some cash for the property

• You establish the amount you are willing to sell the property to the Giving Center for, which is less than the appraised value.

• You receive a charitable deduction for the difference between the bargain sales price and the appraised value

• There is no capital gain on the gifted amount

• Upon the sale of the property to a third party, the net proceeds are used to establish a fund with the Giving Center to support your charitable goals.

The Gift Making Process

• Contact the Giving Center to initiate the gifting process. The Giving Center accepts the gift and handles the sale of the property

• You order an appraisal by a qualified appraiser to substantiate the value of the charitable deduction; Giving Center can assist in locating a qualified appraiser

• The debt on the property needs to be addressed. Giving Center can help to explore various options with you

• Giving Center  will review the site, location, estimated value, marketability, tenant issues, any special circumstances and will discuss with you.

• You transfer title and ownership to the Giving Center

• You file IRS Form 8283, Non-cash Charitable Contribution Appraisal Summary which Giving Center will provide you with.

• Giving Center lists the property for sale with a qualified broker

• Giving Center works with you to clarify the organizations or causes you want to support through your fund

• If the property sells within two years, Giving Center will report the sale to the IRS on Form 8282

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